With the development of globalization and urbanization，the status of “City Diplomacy” in modern and contemporary diplomatic relations has been gradually improved. The importance of key central cities has become increasingly essential. The value of urban functional construction is more and more important. Beijing，the capital city of China，is necessary to play its unique functions in its city diplomacy，and at the same time to fully promote its functional construction with city diplomacy. This paper combined with the function of city diplomacy and development of capital’s cultural trade，it is necessary to accelerate the practice of city diplomacy to promote the high-quality development of cultural trade in Beijing from the aspects of overall strategic layout and spatial layout of cultural and economic diplomacy，construction of platform，cultivation of urban soft environment，full development of diversified diplomacy，exertion of policy advantages and cultivation of compound talents.